Impact of Cultural Differences, Internal and Environmental Factors at Airbus

Airbus was planning to introduce the A380 in direct competition to Boeing 747 to compete in the large aircraft sector. The rivalry between Airbus and Boeing was already intense. Boeing’s market share reduced from 70% in 1974 to 45% in 1990 while Airbus’s market share had increased from 1% to 34% during the same time (Exhibit 5). Encouraged by this increase in market share, Airbus was contemplating the introduction of A380. Development of new product line is extremely expensive in the Aircraft sector. Following is a quantitative analysis of the project to calculate the risks involved in introducing a new line of Aircrafts.

This paper is to examine the key potential drivers within the present internal environment. Several models would be applied to support the answer and they are Stakeholder Power/Interest Matrix, Cultural Web, Resource audit, Value Chain, and threshold and core competences. With using Ryanair as an industrial example, this essay would talk about how important strengths and weaknesses are to be used in designing strategy.

Resistance to change is an expected reaction of human nature. We are not accustomed to change, as it is possible to lead to failure; however, there are also ways to manage the resistance within the company.

In 2000, Airbus Industrie’s Supervisory Board was making the biggest decision in the company history: whether Airbus should commit to develop world’s largest jumbo jet. At that time, there are only two major commercial jets manufactory companies: the younger Airbus and the bigger Boeing. Boeing had been at the forefront of civil aviation for over half century. Airbus was founded in 1970as a consortium and merged into a new company known as European Aeronautic Defense and Space Company. Airbus developed “fly-by-wire” technology and “cross crew qualification” technology to compete with Boeing in large jets (those with 70 or more seats) market. While Airbus was booked more than

The following analysis identifies the major strategic issues of Airbus and its industry, provides alternatives and a recommendation of the most optimal solution, and details a plan of implementation for the company.

Boeing’s management plan shows determination to improve through creation of new more members of their airplane family (commercial airplanes). This would also be achieved through integration of military platforms, systems for defense and the war fighter by use of network-centric activities. Boeing plan is also inclusive of creation of improved technology to solve problems across all business units. Boeing plans to e-enable airplanes where automation is the key to this development. Finally, Boeing is determined to arrange for financing solutions to its customers. Through this it will be able to attract more potential customers. Moreover, it can also be able to establish a better relationship with its customers through provision of incentives and sales promotion.

The weakness of Qantas lies in the management and their lack of investment in their employees. The management weakness can be seen in many of the financial and operational issues. Qantas faces several Industrial disputes which the company’s competitors do not experience. These issues affect the interior structure and the external opportunities to gain new customers. This also makes this their biggest

Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies.

Nevertheless, MD was in financial disarray in 1990, as a consequence of the strong competition and rapidly dropping demand for its products; the strong emergence of Airbus squeezed MD's market share. This was the main reason for which the company in the future decides to make a joint venture with other companies in order to avoid its financial problems.

The British Airways case study was a very interesting case to read. It proves that not all people can be leaders, especially the chairman, board and chief executives of British European Airways (BEA) and British Overseas Airways Corporation (BOAC.) According to the case study of British Airways, the life at the “old” British Airways was “bloody awful” (Changing the Culture of British Airways, 1990, p. 1).

This paper analyzes the goals and actions of Boeing by analyzing its critical success factors as well as its strategic roadmap.

Boeing is the world 's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. (Boeing, 2014). The revenue for Boeing Commercial Airplanes and Defense, Space and Security was a record $86.6 billion; in addition to the record backlog of orders totaling $441 billion. (Boeing, 2014). The Boeing Company realizes that being among other competitive manufacturers of jetliners, defense and security systems, it is important to focus on external as well as internal environmental factors that could increase the company efficiency, productivity and overall operational standards. The management of Boeing understands how essential the social and ethical responsibility and legal of their company. These variables can assist the company with analyzing the performance and available resources of

Bolognese, A. (2002). Employee Resistance to Organizational Change. Retrieved December 2, 2006 from Internet, http://www.newfoundations.com/OrgTheory/

With Airbus continuing to gain market share on Boeing, some available opportunities that are not mentioned in the case study is an expansion into military production. Boeing was the leader of military aircrafts and this would be an open opportunity for Airbus. Airbus eventually entered into the military production in December 2000 with orders for the German Air force. Airbus has the opportunity as well to take the lead on green initiatives, as the world grows ever more concerned about the environment.

Robbins and Judge define organisational behaviour as ‘a method for understanding individual and group behaviour to facilitate organisational performance and effectiveness’ (Robbins and Judge, 2007). Robbins (2003) highlights the importance of managers studying organisational behaviour as this will help them to develop the people skills needed to deal with employers on a day-to-day basis, which is the fundamental aspect of any management role. In fact, organisational behaviour is of huge concern for anyone who organises or supervises the activities of others. There are several influences on organisational behaviour, each of which can impact upon the